Trabaho bill hurdles House 2nd reading

The House of Representatives approved on second reading the Tax Reform for Attracting Better and High Quality Opportunities (Trabaho) bill, the second package of the administration’s tax reform program.

The bill was approved through viva voce voting on Tuesday, while most Filipinos riveted their attention on the revocation of the amnesty granted to Sen. Antonio Trillanes IV.

The Trabaho bill seeks to generate more jobs by reducing the corporate income tax to 20 percent from 30 percent and modernizing the investment regime.

House committee on ways and means chairman Dax Cua earlier assured the public that the Trabaho bill would not lead to mass layoffs or an additional tax burden on consumers unlike the Tax Reform for Acceleration and Inclusion (Train) law, the first tax reform package enacted in January, which is now being blamed for the inflation uptick.

Under the new tax incentive scheme, an investor can enjoy a tax holiday of five to seven years, depending on the location and merits of his investment.

Investments infrastructure and research development industries may also be rewarded with additional tax cuts.

The Makabayan bloc at the House of Representatives strongly rejects the Trabaho bill, calling it the “patently pro-rich sequel to the grossly anti-poor and regressive Train.”

“Train 2 hitches on the back of the notorious first tax reform package, which imposed new and additional excise taxes on oil and other commodities that sent off a tsunami of price hikes harshly affecting millions of poor families,” the coalition said.

The bloc said the increased revenues from the increased indirect taxes under Train are meant to ensure funds to offset the losses estimated at P62 billion per two percentage point cut, from the reduced corporate income taxes under the Trabaho bill.

“We strongly oppose the lowering of corporate income taxes to a uniform 20 percent under Train 2, as it will disproportionately benefit foreign and big local corporations, which have managed to thrive and reap huge profits under the current 30-percent tax rate,” it said.

The Makabayan bloc vows to challenge the bill in future deliberations.

The Makabayan Bloc coalition in Congress is composed of Bayan Muna Rep. Carlos Isagani Zarate, ACT Teachers partylist Reps. Antonio Tinio and France Castro, Gabriela Women’s Party Reps. Emmi de Jesus and Arlene Brosas, Anakpawis partylist Rep. Ariel Casilao and Kabataan partylist Rep. Sarah Elago.